What is the guarantor's liability based on in the Augusta Lawn Care franchise agreement?
Augusta_Lawn_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
If You are a corporation, all officers and shareholders, or, if You are a partnership, all Your general partners, or, if You are a limited liability company, all Your members, shall approve this Agreement, permit You to furnish the financial information required by Augusta Lawn Care , and agree to the restrictions placed on them including restrictions on the transferability of their interests in the franchise and the Augusta Lawn Care Business and limitations on their rights to compete, and sign separately a Guaranty, guaranteeing Your payments and performance. Where required to satisfy our standards of creditworthiness, or to secure the obligations made under this Agreement, You may be asked to sign the Guaranty. Our form of Guaranty appears as Exhibit C to this Agreement.
Source: Item 23 — RECEIPTS (FDD pages 44–184)
What This Means (2025 FDD)
According to the 2025 Augusta Lawn Care Franchise Disclosure Document, if the franchisee is a corporation, partnership, or limited liability company, all officers and shareholders (for a corporation), general partners (for a partnership), or members (for an LLC) must sign a Guaranty. This Guaranty ensures that these individuals guarantee the franchisee's payments and performance under the franchise agreement.
This requirement means that the personal assets of these individuals could be at risk if the Augusta Lawn Care franchise fails to meet its financial or operational obligations. The franchisor, Augusta Lawn Care, may require a Guaranty to satisfy their standards of creditworthiness or to secure the obligations made under the agreement.
It is important for prospective Augusta Lawn Care franchisees to carefully review Exhibit C, which contains the form of Guaranty, to fully understand the scope and implications of this personal guarantee. Franchisees should seek legal counsel to assess the risks associated with signing such a document.